The final UN Global Compact meeting of the year focused upon Rio +20 UN conference on sustainable development, scheduled for June 2012.  The day the UK UNGC participants gathered in London, the announcement of the outcome of the Durban climate change meetings was still fresh.  After protracted negotiation a level of agreement was reached.  

So let’s draw, in the spirit of festive goodwill, on that as an achievement.  With a focus on solutions and innovation- as highlighted at the UNGC meeting - is there not more potential to influence change?   Despite all the barriers and gloomy news.

The impasse at Durban was ultimately broken by different stakeholders influencing each other.  The participants at the UNGC panel – from ARM holdings plc, BP, Marshalls, Aviva and RBS -  all spoke to an increasing level of partnership.  This theme was echoed by Stephen O Brien, the parliamentary under-secretary of State for International Development. The UK government, as many others around the world, is also focusing on partnership with corporates, NGOs  and wider civil society in search of innovative solutions to global issues.

So it is only logical that companies are tackling issues that not only face them, but the communities they work in, by working together with various stakeholders. Increasingly firms, who may be fierce competitors, finding reason to sit together and work on an issue.  Fighting corruption is one area: through collective action companies have more chance of influencing structural change. 

Aviva is currently advocating on public policy changes through a partnership coalition with NGOs, governments and investors, (who collectively manage assets of approximately US$2 trillion) calling for a convention on corporate sustainability reporting.  They believe that progressive companies understand that long-term value is enhanced by embedding long-term sustainability considerations into their business strategy and the value of disclosure to investors.  This will help capital  to be allocated to more sustainable, responsible companies and strengthen the long term sustainability of financial system.

Not surprisingly, the topic of integrated reporting was then widely discussed.  Aviva’s call to action underlines the importance of companies – of all sizes – getting to grips with the sustainability thinking.    The future of reporting – truly informing the wider actions of the business, good and bad -  is the focus of the International Integrated Reporting Council of which both UNGC and CIMA are members. 

The IIRC is itself a reflection of partnership with a cross section of leaders from the corporate, investment, accounting, securities, regulatory, academic and standard-setting sectors as well as civil society closely involved.

ARM are signed up to the  IIRC pilots and are reflecting on challenging questions.  Where, for example, does ARM draw the line on its impact?  As one of the world’s leading processor intellectual property licensors, ARM designs the technology that is at the heart of advanced digital products.   In effect what ARM creates “fuels” billions of products globally via a multitude of high value customers, partners and supply chains. Food for thought.

Through innovation, partnership and, critically, learning from what is achieved through better understanding of sustainability -  business can better identify the benefits it can bring to address some of the world’s biggest challenges. 

And there are enough challenges out there, economically, socially and environmentally, that demand we work together in tackling them. In 2012 how will your firm address the issues?  And who with?